KeyBanc Captial Markets' Edward Yruma upgraded his rating on Chico's FAS, Inc. (NYSE: CHS) from Hold to Buy Tuesday morning. Yruma established a target price of $21 for Chicos shares. Chicos' is currently trading at $16.99, up $0.51.

It should be noted Yruma has been sitting on the sidelines in shares of Chico's for nearly two years, thus representing a change in tendency.

In the note, Yruma seems giddy, highlighting that recent meetings with Chico's management left him feeling impressed. Yruma said he now believes "self-inflicted issues" are behind the fashion conglomerate.

In CHS' stable of fashion brands are three names Yruma believes are poised for growth:

Soma - CHS' brand of intimate wear has undergone many transformations, notably as a spacefiller in other CHS brand stores. Now the brand is profitable and solidly positioned to target women 35 years of age and older. Lingerie giant Victoria's Secret, of L Brands Inc. (NYSE: LTD), has focused on a younger demographic, enabling significant growth potential for Soma, according to Yruma.

Boston Proper - acquired by CHS as a mail order business, has demonstrated retail sales productivity similar to WHBM in three stores opened in August. Of note, CHS "trades at a meaningful discount to it peers despite its long-term growth potential and strong cash position," Yruma said.

Shares of Chico's FAS are trading up more than 3.5 percent Tuesday afternoon.